H.B. 197 Enrolled

RETIREMENT SYSTEM PARTICIPATION
2000 GENERAL SESSION
STATE OF UTAH
Sponsor: Raymond W. Short
AN ACT RELATING TO RETIREMENT; AUTHORIZING A WINDOW FOR CREDIT
UNIONS OR PRIVATE HOSPITALS TO WITHDRAW FROM THE RETIREMENT SYSTEM;
AND PROVIDING AN EFFECTIVE DATE.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
49-2-204, as last amended by Chapter 217, Laws of Utah 1991
49-3-204, as last amended by Chapter 157, Laws of Utah 1992
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 49-2-204 is amended to read:
49-2-204. Participation of political subdivisions -- Limitations -- Exclusions --
Organizations and agencies supported by public funds -- Admission requirements --
Withdrawal from system -- Full participation in system -- Exceptions -- Additional programs
authorized -- Withdrawal.
(1) All political subdivisions of the state, unless excluded under Subsection (2), are
participating employers in the system and may not withdraw from participation in the system. All
departments and educational institutions are also participating employers in the system and may not
withdraw from participation in the system. As participating employers, political subdivisions,
departments, and educational institutions shall meet all requirements for full participation in the
system.
(2) (a) Any political subdivision not initially admitted or included as a participating
employer in the system prior to January 1, 1982, may be excluded from participation in the system
if:
(i) the political subdivision elects not to provide or participate in any type of private or
public retirement, supplemental or deferred income program, either directly or indirectly, for its
employees, except for social security; or

(ii) the political subdivision participated in another collectively bargained retirement program
and has continued to do so on an uninterrupted basis since that date.
(b) Any excluded political subdivision may by resolution of its governing body apply for and
receive admission to the system. Once admitted, the political subdivision may not withdraw from
participation and shall meet all requirements for full participation in the system. If an excluded
political subdivision elects at any time to provide or participate in any type of public or private
retirement, supplemental or deferred income program, either directly or indirectly, except for social
security, the political subdivision shall be required to be a participating employer in the system. As
a participating employer, the political subdivision may not withdraw from participation and shall meet
all requirements for full participation in the system.
(3) (a) Any organization or agency supported in whole or in part by state public funds, which
prior to application is not covered by this chapter, may by resolution of its governing body apply for
admission to the system. The board may refuse admission to any organization or agency applying for
admission upon a finding that it is not in the best interest of the participating employers and
employees.
(b) Upon approval of the board, the organization or agency shall become a participant in the
system if the board and the organization or agency agree upon:
(i) the terms by which its employees shall become members of the system, such as the
effective date of coverage;
(ii) the amount of prior service credit with which they may be credited, if any;
(iii) the amount of any contributions in addition to regular contributions that will be required
to provide any prior service credits or retroactive current service credits from either the employing
unit or its employees; and
(iv) the manner in which retroactive current or prior service credits may be established, if any.
(c) Once admitted to the system, an organization or agency may not withdraw from
participation, except as provided in Subsection (4), and shall meet all requirements for full
participation in the system.
(d) An organization or agency supported in whole or in part by public funds may not apply

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for or receive admission to the system after the effective date of this Subsection (3)(d).
(4) (a) An organization or agency admitted to the system pursuant to Subsection (3) which
no longer receives public funds may withdraw from the system if:
(i) the organization or agency's governing body, by resolution, petitions the board for
withdrawal from the system; and
(ii) the board approves the withdrawal.
(b) Once approval to withdraw is granted, the organization or agency and its employees shall
be governed by Sections 49-1-502 and 49-1-503 .
(5) Except as provided in Sections 49-2-205 and 49-2-206 , no participating employer may
maintain full participation in the system by covering only part of its employees. The full participation
requirement is satisfied if a participating employer covers those of its employees eligible for coverage
under:
(a) Title 49, Chapter 4, Public Safety Retirement Act; or
(b) Title 49, Chapter 5, Firefighters' Retirement Act and its remaining employees under either
Title 49, Chapter 2, Public Employees' Retirement Act or Title 49, Chapter 3, Public Employees'
Noncontributory Retirement Act, whichever is applicable.
(6) In addition to their participation in the system, participating employers may provide or
participate in any additional public or private retirement, supplemental or deferred income program,
either directly or indirectly, for their employees.
(7) (a) Credit unions or private hospitals which are participating units in any system
administered by the board may withdraw from participation upon applying to the board. This
application shall be made [by December 31, 1987] between July 1, 2000, and December 31, 2000.
The withdrawal is effective the day after the last day the withdrawing unit pays retirement
contributions on its employees' salaries.
(b) Once the withdrawal of the credit union or private hospital is complete, the employees
of the withdrawing unit may apply to withdraw their vested contributions. Refunds shall then be paid
in accordance with Subsection 49-1-502 (3).
(c) Under no circumstance may a withdrawing unit receive the employer contributions which

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have been made to the system.
Section 2. Section 49-3-204 is amended to read:
49-3-204. Participation of political subdivisions -- Limitations -- Exclusions --
Organizations and agencies supported by public funds -- Admission requirements --
Withdrawal from system -- Full participation in system -- Exceptions -- Additional programs
authorized -- Withdrawal.
(1) All political subdivisions of the state, unless excluded under Subsection (2), are
participating employers in the system and may not withdraw from participation in the system. All
departments and educational institutions are also participating employers in the system and may not
withdraw from participation in the system. As participating employers, political subdivisions,
departments, and educational institutions shall meet all requirements for full participation in the
system.
(2) Any political subdivision not initially admitted or included as a participating employer in
the system prior to January 1, 1982, may be excluded from participation in the system if the political
subdivision elects not to provide or participate in any type of private or public retirement,
supplemental or deferred income program, either directly or indirectly, for its employees, except for
social security. Any excluded political subdivision may by resolution of its governing body apply for
and receive admission to the system. Once admitted, the political subdivision may not withdraw from
participation and shall meet all requirements for full participation in the system. If an excluded
political subdivision elects at any time to provide or participate in any type of public or private
retirement, supplemental or deferred income program, either directly or indirectly, except for social
security, the political subdivision shall be required to be a participating employer in the system. As
a participating employer, the political subdivision may not withdraw from participation and shall meet
all requirements for full participation in the system.
(3) (a) Any organization or agency supported in whole or in part by state public funds, which
prior to application is not covered by this chapter, may by resolution of its governing body apply for
admission to the system. The board may refuse admission to any organization or agency applying for
admission upon a finding that it is not in the best interest of the participating employers and

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employees.
(b) Upon approval of the board, the organization or agency shall become a participant in the
system if the board and the organization or agency agree upon:
(i) the terms by which its employees shall become members of the system, such as the
effective date of coverage;
(ii) the amount of prior service credit with which they may be credited, if any;
(iii) the amount of any contributions in addition to regular contributions that will be required
to provide any prior service credits or retroactive current service credits from either the employing
unit or its employees; and
(iv) the manner in which retroactive current or prior service credits may be established, if any.
(c) Once admitted to the system, an organization or agency may not withdraw from
participation, except as provided in Subsection (4), and shall meet all requirements for full
participation in the system.
(d) An organization or agency supported in whole or in part by public funds may not apply
for or receive admission to the system after July 1, 1991.
(4) (a) An organization or agency admitted to the system pursuant to Subsection (3) which
no longer receives public funds may withdraw from the system if:
(i) the organization or agency's governing body by resolution petitions the board for
withdrawal from the system; and
(ii) the board approves the withdrawal.
(b) Once approval to withdraw is granted, the organization or agency and its employees shall
be governed by Sections 49-1-502 and 49-1-503 .
(5) Except as provided in Sections 49-3-206 and 49-3-207 , no participating employer may
maintain full participation in the system by covering only part of its employees. The full participation
requirement is satisfied if a participating employer covers those of its employees eligible for coverage
under:
(a) Title 49, Chapter 4, Public Safety Retirement Act; or
(b) Title 49, Chapter 5, Firefighters' Retirement Act and its remaining employees under either

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Title 49, Chapter 2, Public Employees' Retirement Act or Title 49, Chapter 3, Public Employees'
Noncontributory Retirement Act, whichever is applicable.
(6) In addition to their participation in the system, participating employers may provide or
participate in any additional public or private retirement, supplemental or deferred income program,
either directly or indirectly, for their employees.
(7) (a) Credit unions or private hospitals which are participating units in any system
administered by the board may withdraw from participation upon applying to the board. This
application shall be made [by December 31, 1987] between July 1, 2000, and December 31, 2000.
The withdrawal is effective the day after the last day the withdrawing unit pays retirement
contributions on its employees' salaries.
(b) Once the withdrawal of the credit union or private hospital is complete, the employees
of the withdrawing unit may apply to withdraw their vested contributions. Refunds shall then be paid
in accordance with Subsection 49-1-502 (3).
(c) Under no circumstance may a withdrawing unit receive the employer contributions which
have been made to the system.
Section 3. Effective date.
This act takes effect on July 1, 2000.

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